Transport charges Service Tax in their transportation bill

[SWAMINATHAN RAMANATHAN]

Transport Corporation of India charging service tax n their Transportation bill.

The onus of discharge of service tax liability in the case of GTA is on the consignor or consignee whosoever makes payment to the transporter. The burden of discharge of service tax liability can’t be shifted to the service provider i.e. transporter  with reference to S.No. I (A) (ii) (e) of the  Notification No. 30/2012-ST

Kindly advice whether the service tax payable by consignor or consignee directly Govt., or  pay to TCI.

 

AI Summary

Who Pays Service Tax on Transport Bills: Consignor or Consignee? Clarification Under Notification No. 30/2012-ST. A discussion on a forum addresses the issue of service tax liability related to transportation bills issued by a transport corporation. The main question is whether the consignor or consignee should pay the service tax directly to the government or through the transport company. Responses clarify that the responsibility to pay service tax lies with the consignor or consignee who pays the freight bill, not the transporter. It is emphasized that if the payer falls under specific categories such as factories, societies, or corporate bodies, they are liable to pay the service tax as per Notification No. 30/2012-ST.